On Wednesday , Chevron became the biggest oil company in America . It ’s the first fourth dimension Exxon and its predecessor , Standard Oil , have n’t occupied the throne since the late 1800s . RIP to a real(ly bad ) one .
The covid-19 pandemic has not been kind to Exxon . It’slost over $ 1 billionsince the crisis begin , with its analyst noting that if petroleum toll do n’t increase , its prove oil reservescould drop 20 % . In August , itfell off the Dow Jonesfor the first fourth dimension in well-nigh a hundred . And last workweek , its analystswarnedit likely meet its third sequential quarterly loss , meaning it ’s now relying on debt to pay for its Das Kapital consumption and dividends . Because vim hulk are gon na vigor giant , the company has direct this crashout onworkers .
Exxon ’s tremendous decline has come despite its good efforts to be the fossil - fueliest fogy fuel ship’s company around . Unlike some ofitsmajorindustrycompetitors , the corporation has n’t disclosed its emissions forecasts or committed to ramping down fuel production . In fact , leaked documentsearlier this calendar week record it plans to rage up its emissions dramatically .
“Relationship ended with ExxonMobil. Chevron is my best friend now.” - The energy marketPhoto: Spencer Platt (Getty Images)
Among Big Oil , Exxon ’s climate plan was dead last in arecent analysisby Oil Change International . In fact , it was one of just two companies that did n’t meet a single one of the organization ’s measures . The other was — guess who?—Chevron , its biggest competition , which has likewise break to make a programme to reach carbon neutrality or set long condition finish to phase out oil colour production , among other metrics .
On the one hand , this may show that bad climate plans have helped both companies have stayed prevalent by polluting . Exxon and Chevron have both maintained a bigger market share than competition who have pay lip service to making change to mitigate their impact on the climate .
But on the other , it show that committing to drilling for more oil and gas wo n’t save these companies . The pandemic has speed up a fall in the fortunes of American oil companies ; Chevron ’s contribution Mary Leontyne Price has dropped 39 % in 2020 , while Exxon ’s has fallen by 52 % . But Exxon and Chevron are n’t alone in this decline either . Because of falling demand for fossil fuels , faux - awake rock oil company like BP arecrashing , too . oodles of little player are alsostruggling to pay loansor going bankrupt as well . The data is showing us that the reign of fossil fuels may be coming to a long - delinquent end , and that expanding oil and gas production is no longer a profit - pee strategy .
But that ’s not to say we should just let this market declination work its thaumaturgy . As Oil Change ’s recent study shows , even the highest - ranking Department of Energy caller ’ architectural plan for the transition are completely unscientific and grave from a clime position . Plus , the firms have basically no policies in billet toprotect their workersor the environmentamid their declivity .
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